Concept explainers
Remington Inc. is contemplating the use of
Remington wants to begin using process costing in the Shipping Department. Direct materials represent the fuel costs to run the ship, and “Containers in transit” represents work in process. Listed below is information about the Shipping Department's first month’s activity.
Compute physical units and equivalent units of production. (LO 3, 4), AP
Containers in transit, April 1 | 0 |
Containers loaded | 1,200 |
Containers in transit, April 30 | 350, 40% of direct materials and 20% of conversion costs |
Instructions
(a) Determine the physical flow of containers for the month.
(b) Calculate the equivalent units for direct materials and conversion costs.
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